Sarah Agnew | @sarahagnewphotos via Unsplash
Stephen has announced that Ministers will be accepting the key recommendations of Sayce review on Carer’s Allowance.
Unpaid carers will now have their Carer's Allowance overpayments reviewed and potentially cancelled or repaid, following an independent review that found unclear guidance left people facing unexpected debts.
The independent Sayce Review, launched in October last year, found unclear guidance on averaging fluctuating earnings prevented carers from understanding what changes to their pay needed reporting to the Department for Work and Pensions. This meant thousands of people juggling 35 hours of care with paid work built up debts without realising they had breached the weekly earnings limit.
The DWP has accepted that unpaid carers were let down by confusing rules - in place between 2015 and summer 2025 - and this government is now moving to fix these inherited problems. Where it is found that overpayments were lower than originally calculated, carers will have their debts reduced or cancelled entirely, with the Government refunding any money already repaid.
Speaking about her review, Liz Sayce said: “My review found that overpayment debt has had major impacts on carers' health, finances and family well-being, and been a disincentive to work. I'm glad Government now plans to review cases and cancel or reduce debts affected by flawed guidance.”
Stephen, who is Minister for Social Security and Disability, added: “Carers deserve a benefit that reflects their vital contribution to society but, we inherited problems with Carer’s Allowance which we’re determined to fix. Every day, they provide care and support that enables their loved ones to live with dignity – and we owe them a system that works properly.
“I want to reassure carers that this issue doesn’t affect many cases. But where it’s gone wrong, we’ll put it right.
“The Government recognises the vital role carers play supporting the people they care for, their communities and the country, and is committed to making their lives easier.”